Volkswagen to invest $900m in new US model

FRANKFURT: German auto giant Volkswagen said Monday it will invest $900 million (643 million euros) to build a new sports utility vehicle (SUV) in Chattanooga, Tennessee from 2016.

"The Volkswagen group is expanding its industrial footprint in the US," the carmaker said in a statement.

"The board of directors has decided to award the production of the new midsize SUV to the Chattanooga plant in Tennessee. The group will be investing a total of approximately $900 million in the production of a newly developed, seven-passenger SUV, and creating 2,000 additional jobs in the US," the statement said.